• Same-store sales increased 1.9%
  • Inventory per square foot declined 8.6%
  • Shift of cold weather product to Q3

 

US sportswear chain Dick's Sporting Goods has increased its net income during the third quarter - as cold weather drew customers inside.

"While we are pleased with the year-over-year growth in sales and operating margin generated in the third quarter, we believe we benefited from a shift of cold weather product sales from the fourth quarter to the third quarter as a result of colder weather conditions relative to last year," said Edward W Stack, chairman and CEO.

Stack said the firm had successfully managed inventory and controlled expenses, but still executed its merchandising and marketing strategies.

Dick's reported consolidated net income for the third quarter of $18.9m, compared to net income including merger and integration costs of $6.2m in the prior year period.

Net sales for the third quarter of 2009 increased by 7.1% to $989.8m, helped primarily by a 1.9% consolidated same-store sales increase. This consisted of a 2.2% increase in Dick's Sporting Goods stores and a 1.5% decline in Golf Galaxy stores.

The company opened 11 Dick's Sporting Goods stores and relocated one Dick's Sporting Goods store during the quarter.

The company reported consolidated GAAP basis consolidated net income of $68.0m for the first three quarters, compared to $65.7m for the same period last year.

Net sales increased 5.3% to $3bn in the first three quarters, partially offset by a consolidated same-store sales decrease of 3.0%.

For FY 2009 the company currently anticipates reporting same-store sales down approximately 4 to 3% compared to a 4.8% decrease in 2008.

Click here to view the company's full third quarter earnings statement.